How To Make A Public Blockchain Platform In 2022 & Beyond?

Since Satoshi Nakamoto pointed out that traditional transaction systems are way behind and does not sync well with the information age in 2009, blockchain solutions started gaining momentum. They operate with a commonly shared consensus among network users. What makes the public network better? Well, transparency! If you were searching for “how to make a public blockchain platform?” , the blog has everything for you.

Public Blockchains – A Briefing

While numerous public blockchains exist, only a handful such as Solana, Polygon(MATIC), Polkadot, and Cardano have surfaced as the top-performing networks in 2021. 

A public blockchain has ZERO restrictions. People with internet connections can access the blockchain network, validate blocks, and transact seamlessly. Most of these networks offer some incentive to the users who validate the blocks.

Such networks rely on the Proof of Work(Pow) or Proof of Stake(PoS) consensus algorithms to validate transactions, with the latter getting a wider acceptance recently. 

Blockchain Protocols

A blockchain protocol defines how the blockchain will operate. It is a set of standardized rules dictating the blockchain ecosystem’s performance and what it should/should not do. 

Generally, developing a blockchain protocol includes the following:

1. Transactions handling and validation procedure,
2. Block producers,
3. Interaction between nodes,
4. Synchronization of ledger data and data broadcasting, 
5. Validation rewards for the users (if any), and lastly,
6. The application programming interface.

The prevailing blockchain protocols can be broadly segregated into #3 layers:

Layer 1

This layer depicts the fundamental procedure of a blockchain. For example, Proof of Work (PoW), Proof of Stake (PoS), etc.

Layer 2

It improves the scope of Layer-1 and addresses speed & scalability issues. For example, Polygon (MATIC) is a Layer-2 scaling solution. It strives to solve the pain points like slow speed, high gas fees, etc., without sacrificing security.

Layer 3

It primarily deals with the application & execution bottlenecks of a blockchain. Numerous decentralized applications are just Layer-3 protocols. Examples include Uniswap or the NFT marketplace NBA Top Shot.

How To Make A Public Blockchain Platform?

Here is a step-by-step process of development curated for you.

Step 1: Identification Of A Suitable Use-case

To begin with, you must identify a solid use case for the platform that makes sound business sense. It has a plethora of use cases in data authentication, smart contracts, IoT, money transfer, logistics, etc. 

• Thanks to the billions of connected devices, it is becoming easier for hackers to breach your data through a single connected device. Integration of blockchain technology with IoT devices can prevent that.

• Smart contracts eliminate the middlemen and introduce accountability for all involved parties, which is impossible in traditional agreements.

• Developing a blockchain solution also facilitates lightning-fast transactions and is already transforming the BFSI sector. It eliminates transaction fees levied by traditional financial institutions.

• Data siloing, miscommunication, and transparency continue to plague the logistics industry. Blockchain solutions can recognize logistics data sources & automate processes, boosting speed, efficiency, and transparency.

There are plenty of other use cases like the metaverse through integration with VR software development and NFTs. The use case of the blockchain should be the guiding force behind all the forthcoming steps.

Step 2: Identification Of The Best Consensus Mechanism

While Bitcoin utilizes the Proof of Work consensus mechanism, there is a wide range of consensus mechanisms today. Examples include Proof of Stake, Byzantine fault-tolerant consensus, Proof of Elapsed Time, Federated consensus, Derived PBFT, and much more. Choose the consensus mechanism that appropriately complements the use case for the public blockchain you want to develop.

Step 3: Creating The Blockchain Protocol

While setting up the blockchain protocol, you must have a clear idea of the following:

1. Account Model- What are the requisites of the account model when you are designing a blockchain protocol? Is the account balance-based or UTXO-based? It would also help if you also brainstormed the rules to generate your account name and account type. Ellipse algorithms such as Curve 25519 can be deployed. 

2. Encryption Algorithm- You must pick the best encryption model for the protocol. Currently, asymmetric encryption algorithms are trending! 

3. Data Architecture- The data architecture forms the backbone of the protocol. It encapsulates block data structure, account data structure, node data structure, and transaction data structure. Each block demands a block header, and you can design it to suit the project requirements. An interoperable design can blend the consensus mechanism of the blockchain with data storage.

Also Read: Top 13 programming Languages For Blockchain App Development (2022)

Step 4: Data Structure & Storage

The block data structure, account data structure, node data structure, transaction data structure are all examples of data structures. 

If you are working with a relational database system, this will primarily include the database tables you create. 

Based on the requirements, you can opt for a data storing mechanism. It is possible to decouple data storage from a sufficiently independent location. You can implement an interoperable design for a blockchain’s consensus mechanism & data storage with an API. 

Step 5: Designing The Node Communication Protocol

Here, the seed of blockchain nodes are designed. Blockchain solutions can be diverse. It can be private (for example, implementation agreement management system in a defense company), public (for instance, an asset-backed cryptocurrency), or hybrid (for example, a group of financial institutions operating a common KYC platform).

Node communication means that you can access the nodes, providing you feedback. One can utilize Socket, HTTP, or GRPC to compute. However, GRPC offers a slight efficiency advantage over HTTP. 

You can also decide whether the nodes execute on-premise, cloud, or both. The hardware configuration comes next, where you can opt for the processors, memory, disk size, etc. Additionally, you can choose operating systems like Ubuntu, CentOS, Windows, Debian, etc.

Step 6: Designing the Blockchain Instance

A blockchain need a carefully-planned configuration for these elements:

1. Parameters,

2. Asset issuance,

3. Atomic exchanges,

4. Native assets,

5. Asset re-issuance,

6. Key management,

7. Multi signatures,

8. Permissions,

9. Address formats,      

10. Block signatures, and

11. Hand-shaking, etc.

There are quite a few parameters that can be changed during the run-time, but there are others that can’t be tampered with.

Also Read: The Best 13 Programming Languages For Blockchain App Development (2022)

Step 7: Integrating The Blockchain APIs

While some blockchains implement pre-built APIs, others don’t. The major categories of APIs that you might require are for these purposes:

1. Generating addresses & key pairs,
2. Data authentication via hashes and digital signatures,
3. Conducting audit-related functions,
4. Data storage & retrieval,
5. Smart contracts
6. Smart-asset lifecycle management including issuance, exchange, payment, escrow, and retirement.

Step 8: Designing the Admin & User Interface, Including Additional Techs

You’ll need to decide on the front-end programming languages now. There are many languages such as CSS, HTML5, C#, PHP, Python, Java, Javascript, Golang, Ruby, Solidity, etc. 

You should also pick the servers (including FTP servers, web servers, mail servers) and external databases (for example, MySQL or MongoDB).

Additionally, it would be best if you strive to improve the efficiency of the Blockchain solution by integrating additional techs. These include Artificial Intelligence(AI), Data Analytics, Biometrics, Cloud, Bots, Cognitive Services, Internet of Things, and Machine Learning.

That is pretty much the whole development process of developing a public blockchain. Moving on, let’s take a look at some of the other aspects involved in blockchain development.

Dealing With The Byzantine Nodes

As discussed in Step 4 of the development process, developers code the seed of a node. The problem arises when some of these nodes fail to act as per the coding guidelines. 

A few nodes may turn on just once and fail to do it again. Or, they might return the wrong data. While coding has a lot to do to deal with these issues in the first place, the blockchains should nevertheless have an inherent mechanism in place as a countermeasure. 

While defining the node database table, a field marks the kind of node it is. If it’s a Byzantine node, it should be punished. The general approach is to place that node under a blacklist. However, it should not be a permanent measure, and a release mechanism must be present to reinstate them at a later stage if they are found to be good.

For instance, a bad network, an offline node, or lost data (during the transmission process) can all trigger the Byzantine protocol. Under such circumstances, these nodes won’t permanently lose access in a sound design. 

Thus, to ensure fairness, a release mechanism is vital. While rechecking the node, if it still performs unreasonably, the length of its blacklist time can be increased. 

Also Read: Top Cryptocurrency Apps In 2022

Smart Contracts

Smart contracts can be defined as automated agreements that facilitate the working between the recipient and the contract creator. The agreement is coded & programmed in a blockchain, making it unchangeable & irreversible. 

Contract Execution Through Standard Contracts

An executed contract refers to a signed contract that sets a contractual relationship between two or more parties. Once a contract is duly signed, each party professes to uphold the legal obligations they had agreed on. 

Smart contracts, popularised by Ethereum, the world’s second most renowned blockchain, have made their way into the mainstream with decentralized apps and other use cases. 

Standard contracts (such as the smart contract of Ethereum) automate the agreement execution process and bring all the relevant parties to the same page. They are aware of the conclusion right away, with ZERO need for traditional third-party intermediaries. They can even automate several workflows when certain pre-designed conditions are satisfied.

Example 1

Let us consider a scenario where a client is paying a freelancer for some work. Instead of a bank(third-party) approving the fund transfer, it can be automated through a smart contract if the freelancer and the client agree on the terms!

Example 2

Let’s suppose a scenario where a regulatory group and the citizens debate a law. If both parties consent to an agreement via a blockchain-based procedure, the law will automatically come into effect through an executed contract.

Thus, if you are looking to develop a public blockchain network, smart contracts are something that you must not ignore

Closing Thoughts!

The network infrastructure of a public blockchain is entirely decentralized. All nodes in such a system will have their very own copy of the ledger. Utilizing the consensus algorithms, the nodes can update their respective ledgers efficiently. Since there is no requirement for a central authority to intervene in any step, a public blockchain offers a truly decentralized network. 

You have learned how to make a public blockchain solution in this blog! For an even deeper understanding of blockchain technologies, you can connect with our experts today.

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Frequently Asked Questions(FAQs)

1. What’s The Cost Of Creating A Blockchain In 2022?

If you are looking to create a public blockchain solution, you can expect a budget of $15000 and above. It all depends on the complexity of the project and other additional technologies.

2. Does Blockchain Require Coding?

Yes, it does. Knowledge of web development, data structures, and basic programming language is required for blockchain development. 

3. What Are The Leading Web 3.0 Frameworks For Blockchain?

The best Web 3.0 frameworks to assist blockchain developers in 2022 are the Truffle framework, Hardhat framework, Brownie Framework, OpenZeppelin SDK, and Chainlink SDK. You can learn more about them here.

4. What Are The Top 5 Blockchains In 2022?

It’s a difficult answer as many new coins are launched every month, and several old ones are being upgraded. The top 5 blockchain platforms in 2022 could be:

1. Ethereum,
2. Cardano,
3. Solana,
4. Polkadot, and
5. MATIC.